The re-sale value of a leasehold property in Blaby depends on how long the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year cut off point. Current legislation entitles Blaby qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Blaby with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Blaby leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Aaron was the the leasehold proprietor of a studio apartment in Blaby on the market with a lease of fraction over 59 years unexpired. Aaron informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Aaron to invoke his statutory right. Aaron obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Christmas we were called by Mr and Mrs. B Moreau , who acquired a first floor flat in Blaby in September 2009. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Identical residencies in Blaby with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced per annum. The lease lapsed in 2092. Given that there were 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.
In 2010 we were called by Dr Kayleigh Watson who, having bought a garden flat in Blaby in May 2008. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Blaby with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended on 16 August 2103. Having 78 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.